Form 12BB

What is Form 12BB?

Form 12BB is a document used by salaried individuals in India to declare their tax-saving investments and expenses to their employers. This allows employers to deduct the appropriate amount of tax at source (TDS) throughout the financial year, ultimately increasing your take-home pay.

Purpose of Form 12BB

The primary purpose of Form 12BB is to streamline the tax deduction process for salaried individuals. By submitting this form at the beginning of the financial year, you can estimate the deductions you'll be claiming throughout the year. This allows your employer to withhold the correct amount of tax from your salary each month.

Due Date for Submitting Form 12BB

While you can submit an initial estimate of your deductions at the beginning of the financial year (April 1st), you typically won't need to formally submit Form 12BB until towards the end of the financial year (March 31st). This allows you to account for any final adjustments in your investments or expenses.

Income Tax Form 12BB Structure

Form 12BB is a relatively straightforward document with three main sections:

Part I: Personal Details

• Full Name
• Address
• PAN (Permanent Account Number)
• Financial Year (Current year)

Part II: Details of claims and evidence

This section allows you to declare various deductions and exemptions you're eligible for, including:

• House Rent Allowance (HRA)
• Leave Travel Concession (LTC) or Leave Travel Allowance (LTA)
• Home Loan Interest
• Deductions under Section 80C, 80CCC, and 80CCD (covering investments and expenses like PPF, ELSS mutual funds, life insurance premiums, medical expenses, education loans, etc.)

You'll need to provide the necessary proof (receipts, certificates, etc.) for each claimed deduction when you submit the final form.

Part III: Verification

 This final section involves signing the form and providing your parent's name, city, and date.

How To Fill Form 12BB?

Filling out Form 12BB is a simple process. Here's a breakdown of each section and what information to include:

Part I: Personal Details

Fill in all your basic information accurately.

Part II: Details of claims and evidence

Carefully review the available deductions under sections 80C, 80CCC, and 80CCD. Identify the deductions applicable to you and enter the estimated amounts.
Here are some commonly claimed deductions:

• House Rent Allowance (HRA): Enter the amount of rent paid, landlord's details (name, address, PAN if rent exceeds Rs. 1 lakh annually), and proof (rent receipts or rental agreement).
• Leave Travel Concession (LTC) or Leave Travel Allowance (LTA): If applicable, mention the details and provide travel documents (boarding passes, flight tickets, etc.) later.
• Home Loan Interest: Enter the interest paid to the lender, lender's details (name, address, PAN/Aadhaar), and proof (interest certificate).
• Deductions under Section 80C, 80CCC, and 80CCD: List the specific deductions you're claiming (e.g., PPF, ELSS mutual funds, medical insurance) and the estimated amounts. Remember to submit relevant proof (receipts, certificates) later.

●    Part III: Verification

• Sign the form, provide your parent's name, city, and date.

Deductions Under Section 80C, 80CCC, and 80CCD

• Tuition Fees for Children: for educational institutions with details of payment type (e.g., donation fees, capitation fees, etc.).
• Post Office Term Deposits: Deposit receipt (qualifying deposits are for over 5 years).
• Preventive Health Check-ups under Section 80D: Copies of premium receipts and bills for check-ups (for you or your family).
• Medical Expenses under Section 80DD (for handicapped dependents): Proof of amount spent on medical treatment, training, or rehabilitation, or amount paid towards a scheme for their maintenance.
• Form 10-IA: Required for claiming a deduction for interest paid on higher education loans. (Copy of bank certificate mentioning principal, interest paid/payable).
• Deduction under Section 80UD: For disability (up to Rs. 75,000 or Rs. 1,25,000 for severe disability). Requires a medical certificate from a government hospital or Form 10-IA issued by a competent medical authority.
• Donations under Section 80G: Valid receipts for donations qualifying for deduction under this section (receipts should be in your name).

Conclusion

By understanding Form 12BB and how to utilize it effectively, you can significantly reduce your tax liability and increase your take-home pay. Remember to:

• Submit an initial estimate of your deductions at the beginning of the financial year.
• Gather all necessary proofs (receipts, certificates, etc.) for claimed deductions.
• Submit the final Form 12BB, along with proofs, towards the end of the financial year.
• Consult a chartered accountant (CA) for personalized advice if your tax situation is complex.